Data centers worldwide are expected to experience a significant increase in electricity demand in the coming years, with a 16% growth projected for 2025 and a doubling by 2030, according to recent data from Gartner. While this surge in electricity usage is substantial, it does not necessarily mean that data centers will double their share of global electricity consumption, as other factors like air conditioning and electric vehicles are also contributing to the rise in energy use.
However, when looking at a more localized perspective, certain countries will bear a heavier burden when it comes to meeting the escalating electricity needs of data centers. The United States and China are anticipated to make up over two-thirds of the electricity demand from data centers during this period. Gartner predicts that the US’s share of regional electricity consumption attributed to data centers could increase from 4% to 7.8% by 2030, with Europe also seeing a rise from 2.7% to 5%. Meanwhile, growth in China and the wider Asia/Pacific region is expected to be more moderate due to advancements in power-efficient servers and infrastructure planning.
The increasing demand for electricity from data centers is primarily being driven by the growing prevalence of artificial intelligence (AI). AI-optimized servers are projected to see a nearly fivefold increase in electricity consumption from 2025 to 2030, rising from 93 TWh to 432 TWh. These servers are expected to account for a significant portion of total data center power consumption, representing 21% in 2025 and increasing to 44% by 2030. This shift towards AI-optimized servers highlights the importance of high-efficiency power and cooling solutions to meet the changing demands of data centers.
In terms of electricity supply for data centers, Gartner points out that on-site generation currently heavily relies on fossil fuels, which is deemed unsustainable in the long run. However, there are emerging alternatives such as green hydrogen, geothermal projects, and small modular reactors (SMRs) that could become viable options for data center microgrids by the end of the decade. While natural gas remains the primary power source for data centers in the near term, there is expected growth in battery energy storage systems (BESS) to balance the fluctuations of solar and wind energy in the next 3 to 5 years. Geothermal microgrids show promise but face challenges like high initial costs and permitting issues, keeping them as a niche option for now.
